GM $GM lifts 2026 EBIT outlook to $13.5B-$15.5B after $500M tariff refund

General Motors $GM raised full-year 2026 EBIT-adjusted guidance to $13.5 billion-$15.5 billion after first-quarter EBIT-adjusted climbed 21.9% year over year to $4.253 billion. The company said a U.S. Supreme Court ruling on tariffs created a favorable adjustment of about $500 million, cutting expected 2026 gross tariff costs to $2.5 billion-$3.5 billion from the prior $3.0 billion-$4.0 billion range.

The headline numbers from GM's financial highlights were mixed but stronger on operating quality than on raw revenue. Revenue slipped 0.9% to $43.624 billion and net income attributable to stockholders fell 5.7% to $2.627 billion, while adjusted EPS rose 33.0% to $3.70 from $2.78 a year earlier. North America EBIT-adjusted improved to $3.661 billion from $3.286 billion, and China equity income rose to $165 million from $45 million.

The guidance bridge matters more than the quarter itself. GM now sees adjusted EPS at $11.50-$13.50, up from $11.00-$13.00, while EBIT-adjusted moves up by $0.5 billion at both ends of the range. Net income guidance, however, shifted lower to $9.9 billion-$11.4 billion from $10.3 billion-$11.7 billion, and diluted EPS narrowed to $10.62-$12.62 from $11.00-$13.00. In the press release GM said it is "raising its full-year 2026 EBIT adjusted guidance" because of the tariff-related adjustment.

That split tells investors where the market debate moves next. Legal relief on tariffs helps, but the company still expects billions in gross tariff costs this year, and automotive operating cash flow dropped 77.8% to $533 million. Adjusted automotive free cash flow was better at $1.269 billion, up 56.4%, which suggests working-capital timing and special-item treatment are doing as much work as volume or pricing in the near term.

CNBC's report framed the release around tariffs, Iran-war energy risks, and EV write-down pressure. The next catalyst is management's conference-call detail on how much of the margin support is durable once the one-time legal adjustment is stripped out, and whether North American truck demand can keep offsetting weaker cash generation in the back half of 2026.

Not investment advice. Verify all figures with primary sources before acting.